Fannie Mae (FNMA)

[Steelhead9]

Correct me if I am wrong ...

1) If FHFA loses at trial, GSE's will have to pay

2) If GSEs have to pay, their cash, and thus, their capital reserves are depleted.

3) If their capital reserves are depleted by X amount, they must raise or accumulate X amount to get back to where they are now, thus increasing the liquidation preference just to get back to where they are now.

4) GSEs would then have to resume raising capital and further increasing the liquidation preference, thus keeping GSEs in conservatorship even longer and creating a higher "exit price"

5) In this case, are we not awarded some sort of damages WITHOUT surrendering our shares? Not the absolute best case scenario, but certainly not horrible.

How is that a loss at all for the forces that want to maintain the status quo longer?

You are suing me, but if I lose, Joe, who I hate, has to pay you. How is this a bad thing for me?